BIG DATA AND ANALYTICS IMPROVE QUALITY CONTROL & REDUCE COSTS
Over the past few years, companies have been using digital technologies and have been accumulating a large amount of data. Up until recently many companies did not really know how to use the data and gather the Business Intelligence necessary to make sound business decisions. Enter into the scene Big Data Analytics as the tool to help them do just that.
It is not a new concept that businesses have always wanted insights from data collected throughout their processes, internal and external, in order to make decisions based on near real-time and accurate data. Those organizations that are at the forefront of the Big Data Analytics charge are not only including internal data but also outside the enterprise, including machine data, and online and mobile data. This will ultimately change the way they manage and run operations as well as how they compete. The main goal is to drive revenues through Business Intelligence.
INVESTING IN BIG DATA ANALYTICS CAN PRODUCE RESULTS
Companies that are willing to invest in Big Data Analytics will have a huge competitive advantage. When value is derived from the analytics and executives are able to act upon the information to drive value throughout the organization, the results are impressive.
According to a report by EY, Big Data It is typically characterized by the four “V’s”:
- Volume: the amount of data being created is vast compared to traditional data sources
- Variety: data comes from different sources and is being created by machines as well as people
- Velocity: data is being generated extremely fast — a process that never stops, even while we sleep
- Veracity: big data is sourced from many different places, as a result you need to test the veracity/quality of the data
In a recent study by Accenture, they interviewed 1,000 senior executives at large global companies regarding Big Data Analytics. Below is a chart showing some of the results achieved by those companies using Big Data Analytics.
|Improvement in customer service and demand fulﬁllment of 10% or greater||46%|
|Faster and more effective reaction time to supply chain issues||41%|
|Increase in supply chain efﬁciency of 10% or greater||36%|
|Greater integration across the supply chain||36%|
|Optimization of inventory and asset productivity||33%|
|More effective S&OP process and decision making||32%|
|Improved cost to serve||28%|
|Better customer and supplier relationships||28%|
Source: Accenture Global Operations Megatrends Big Data Analytics
BIG DATA ANALYTICS MAJOR IMPACT ON OPERATIONAL & FINANCIAL PERFORMANCE
Executives at companies that are using Big Data Analytics have gained an understanding on how best to focus on those strategies that can help them achieve operational and financial performance goals. 37% of Asia Pacific manufacturers are using Big Data Analytics to improve production quality management. IDC found manufacturers in this region are relying on these technologies to reduce costs, increase productivity, and attract new customers. Source: Big Data and Analytics Core to Nex-Gen Manufacturing.
A major contributor to the quest is having an enterprise-wide strategy to improve the order-to-delivery cycle times. Another key practice is to embed Big Data Analytics into the day to day supply chain in order to react and respond faster to making decisions. Companies also rely on having the right combination of people, process and technology. They have also been hiring more talent with diverse analytical skills to help analyze all the big data to ensure quality and avoid costly errors.
To expand on the last paragraph, one thing is to make the investment in the technology another is to invest in acquiring the right talent and providing training as a constant way to stay ahead of the curve. This could be a big differentiator in how well a company is able to make sense of the data and make the right decisions. The right analytics team will allow companies to formulate the right strategies for the business, ranging from supply chain, manufacturing, and customer care.
One global company has stated that they have provided over 50,000 big data related training courses in just one year. Many companies are also coming to the conclusion that analytics talent as a stand-alone is not really enough. Those individuals that have also other talents such as operations, finance, or marketing become more valuable particularly with communication across the organization.
ULTIMATELY HOW DOES THIS BIG DATA HELP THE CONSUMER
The most important insight a company can receive is that of the customer. Companies are taking this to heart by actually now using Big Data Analytics and embedding those insights back into their processes. When analytics permeate the customer life cycle, companies are able to review each stage of the life cycle and use the information to align themselves with the customer. Those organizations that only use the analytics for customer acquisition and sales growth are working without the full view of the complete customer life cycle. According to Forrester there are 6 stages of the life cycle:
Customer Life Cycle Stages:
SO, FOR THE DRIVEN ORGANIZATION……KEEP ON DRIVING!